REIWA calls for stamp duty help for seniors

THE Real Estate Institute of WA has called for a $10,000 concession on stamp duty for seniors over 65 to encourage empty-nesters to downsize.

In its pre-Budget submission, REIWA said older Australians were staying in homes too big for them because they could not afford the up-front cost of stamp duty.

The State Government refused to rule the policy suggestion in or out, saying details would be revealed in next monthâs Budget.

The REIWA submission said older people baulked at stamp duty that averaged about $19,000 on a median-priced $512,500 house.

The money to pay for stamp duty was usually borrowed, which meant repayment costs ended up being tens of thousands of dollars higher.

First-homebuyers get an exemption from stamp duty up to the value of $430,000.

âNot only is transfer duty a hindrance on affordability, but it also impacts the ability for households to make appropriate housing decisions in accordance with their lifestyle choices, changing needs or economic reasons like employment,â the submission said.

âIt is well understood that transfer duty prohibits people from making better housing choices.

âTo ensure that WA has the right mix of housing options and diversity needed to meet the changing needs of the community, the State Government is encouraged to look at ways in which to reduce the impact of transfer duty on the mobility of housing stock.â

REIWA also wants the reintroduction of the $3000 grant for first-homeowners buying established property.

It has also called for a further delay to the 4 per cent foreign owner duty surcharge, claiming WA has the lowest international investment of all the States.